MR. STANZEL: Good morning, everyone. I was going to say, for those of you who have been traveling, welcome back -- but I'm not sure if we have anyone -- you're all well rested.

I'll go through the President's schedule today and then take your
questions, and I can do the week ahead at the end.

This morning the President had his normal briefings at 8:00 a.m. And at
10:05 a.m. he's recording the radio address, and the radio address is about
the urgent need for Congress to pass legislation to provide our
intelligence officials all the tools that they need to protect America from
terrorist attacks. So it will be focused on the Protect America Act.

Also want to note that the -- on the Northern Illinois University memorial
service, last week the President offered condolences to the families and
friends of the victims of the tragic campus shootings at Northern Illinois
University. The President has asked Secretary of Health and Human Services
Michael Leavitt to serve as his personal representative at the memorial
service at Northern Illinois University. And that occurs on Sunday
evening, this Sunday, the 24th. So we have that.

Also another announcement, the Medal of Honor ceremony coming up will be honoring Master Sergeant Woodrow Keeble of the U.S. Army. That will be on March 3rd. The President will posthumously award the Medal of Honor to Master Sergeant Woodrow Keeble. He distinguished himself by extraordinary heroism on October 20, 1951, while serving as the acting platoon sergeant for the support platoon in Company G, 19th Infantry, near Sang San-Ni, Korea.

Q Can you put out a background paper on this, since it's 1951 --
obviously we don't have all the relevant data.

MR. STANZEL: You don't have AP archives back to '51?

Q Might be a little bit --

MR. FRATTO: You weren't there? (Laughter.)

Q I remember reading about it, but -- (laughter.) Was that a "yes" in
the commitment to put out some --

MR. STANZEL: We will provide you whatever information you need, Terry.
So, again, that is March 3rd, that event.

With that, I'm happy to take your questions.

Q Do you have any reaction to the ground operation into Iraq, launched
by Turkey for Kurdish rebels -- against Turkey?

MR. STANZEL: Well, as you know, there's an ongoing dialogue between Iraqis
and leaders in Turkey about how to best confront the threat of the PKK.
We've worked cooperatively with both of our allies on these issues, and
worked to make sure that there's regular coordination about how to best
confront this threat. So this is something that we were aware of in
advance. And as you know, the U.S. agrees with Turkey, that the PKK is a
terrorist organization, and it is an enemy of Turkey, Iraq, and the United
States. And we have demanded that the PKK end their attacks on Turkish
soldiers and civilians.

Q So this is something we don't object to, this operation?

MR. STANZEL: Well, we have been in regular coordination with the Turks and
with the Iraqis. The Iraqis and Turks have been in communication about
this issue, as well. I think those conversations will continue.

Q Does that mean that the U.S. helped coordinate details of this?

MR. STANZEL: We were notified in advance, and as you know, as a NATO ally,
we have a longstanding intelligence sharing relationship with Turkey. That
was intensified with respect to the PKK, as indicated during the meetings
between Prime Minister Erdogan and President Bush.

Q Follow?

MR. STANZEL: Yes, Ann.

Q Does your word, "coordination," mean that the United States could ask
them not to take any military action if given advance warning, or are you
simply --

MR. STANZEL: We were notified, and we urged the Turkish government to
limit their operations to precise targeting of the PKK; to limit the scope
and duration of their operations. And we urge them to work directly also
with the Iraqis, including Kurdish government officials, in determining how
best to address the threat that the PKK --

Q What's the status, if any, of negotiations with Congress over the
terrorist surveillance? What do you expect to happen when they come back
next week?

MR. STANZEL: What we would like to see happen is that Congress take up the
House of Representatives, which is currently blocking the bipartisan
legislation that passed the Senate; we'd like to see that taken up. That
has received a supermajority in the Senate, and would pass the House if it
was brought up for a vote. But House Democratic leaders are blocking that.
That's what we would like to see.

Q That being the case, are there any active negotiations, or is
everybody just -- has their positions --

MR. STANZEL: Well, Congress has been out of town on a 10-day recess, so at
this point I can't speak to staff-level discussions. But we think that the
path forward on this legislation is very clear, and it's a very simple
path; it's one that's supported not only by a majority in the Senate, but
also by a majority in the House. So that is what we would like to see
happen.

Q Okay, and one quick follow up on that. As I understand it, the
sticking point is really about retroactive immunity for the telecoms, not
prospective immunity. So help me understand the administration's argument
that without this retroactive immunity, the telecoms would be reluctant in
the future to cooperate with a surveillance request. If prospective
immunity is already assured, I don't understand how retroactive immunity
has any effect.

MR. STANZEL: Well, retroactive immunity is something that the DNI has
spoken regularly about. He spoke last weekend about it on one of the
Sunday programs. And it's important that we provide that retroactive
immunity for companies that were alleged to have helped after the 9/11
attacks.

What we have is a situation now where the Protect America Act was let to
expire, calls into question prospective retroactive -- or prospective
immunity. And the more uncertainty there are on these issues, the less
willing these companies are going to be, presumably, to put their
shareholders at risk of these multi-billion dollar lawsuits.

Q But let's assume it was passed with prospective immunity -- which is
had, you know, six months ago -- but retroactive immunity wasn't there.
Wouldn't that solve the concerns?

MR. STANZEL: We have always been supportive of providing retroactive
immunity to the companies that felt a patriotic duty to help their country
in the aftermath of the most significant terrorist attack in the history of
this nation. We think that's important.

The opposing arguments for that I assume are because they want trial
lawyers to be able to sue those companies. We don't think that's right.
We think that we should provide that immunity and we think that that's
necessary.

Q Scott, is the administration considering a new program to purchase and
refinance billions of dollars of mortgages in danger of --

MR. STANZEL: Well, on housing -- I think you may be referring to a story
that was out there today. We continue to aggressively address the problems
in the housing industry, in the housing market. As we've said many times,
the problems are diverse and they're different. So there is no one silver
bullet to fix those problems.

The response that we have, therefore, takes many different approaches and
--

Q But the approach outlined in The New York Times -- is that one the
administration is considering?

MR. STANZEL: You know, there are a lot of ideas out there. I'm not going
to speak to the specifics of that story. However, we continue
administratively to administer -- or to implement reforms and to work with
the private sector and to work with homeowners to lessen the impact of this
downturn in the housing market. And so while we continue -- the
administration continues that work, we also continue to wait for Congress
to take action on one of the most significant parts of that, which is FHA
reform. A proposal has been before Congress for quite some time, and it's
inexplicable that Congress continues to not take action on that.

So there are many different ways in which we can address this problem and
we continue to look at ways in which we can do that. But that's what I
have for you right now.

Q Can I go back to the immunity question. You're saying that without
that retroactive immunity, you know, companies may not be willing to put
their shareholders at risk and cooperate. So we're talking about voluntary
cooperation, and it's not just the telecom, is it? I mean, how serious is
that concern? I mean, what kind of -- what is the extent of the
cooperation that -- and what other, outside of telecom context -- are you
talking about, like, car rentals and hotels?

MR. STANZEL: The DNI has said if we don't have cooperation from the
private sector we don't have a program, period. So it's very serious. So
that is -- our first and foremost concern is that immunity protection be
provided so we have partnerships with the private sector, because without
that -- this is not all information that the government, itself, holds.
It's information that we need to work with the private sector to receive,
and to administer the program. And without that, we don't have a program.

Q But when you talk about the private sector, what kind of -- I mean,
what kind of --

MR. STANZEL: Without going into the broad details of the program, I think
those are the types of questions that are best left to the intelligence
professionals that do administer the program.

Q Thank you, Scott. Just a follow-up question. As of today, there is
no surveillance bill on the books, no surveillance laws. What is the
President doing specifically, in terms of lobbying the House of
Representatives, to get the package from the Senate through? Will he call
members, will he bring member --

MR. STANZEL: We can keep you posted on any outreach that he has. I know
there is regular communications between the DNI and the Attorney General
and members of Congress on this issue. The President is highlighting the
need for it in his radio address that he'll be recording today. So it's a
very important issue, and he continues to be focused on it.

Q One other question, if I might. Congressman John Shadegg became the
first of the 29 Republicans who announced his retirement to reverse his
decision last night. Any reaction from the President to that?

MR. STANZEL: I haven't talked to the President about that, but certainly
we've appreciated Mr. Shadegg's service over the years. We think he's been
an outstanding member of Congress. We are appreciative and supportive.
It's been our policy all along to support Republican incumbents as the best
way to retake the majority.

Lester.

Q Thank you, Scott.

MR. STANZEL: This is a gaggle, by the way.

Q Yes.

MR. STANZEL: Yes, off camera, not for broadcast. Just noting that.

Q Senator John McCain held a widely reported press conference yesterday
to denounce the sexual innuendos about him published by The New York Times.
And my question, the President supports Senator McCain in this
controversy, doesn't he?

MR. STANZEL: Well, Lester, certainly that's a story that has received a
lot of attention. I think a lot of people here in this building with
experience in a couple campaigns have grown accustomed to the fact that
during the course of a campaign, about -- seemingly on maybe a monthly
basis leading up to the convention, maybe a weekly basis after that, The
New York Times does try to drop a bombshell on the Republican nominee. And
that is something that the Republican nominee has faced in the past, and
probably will face in this campaign. And sometimes they make incredible
leaps to try to drop those bombshells on the Republican nominees.

So that is something that we're aware of, and that, unfortunately is a fact
of life.

Q Republican Congressman Roscoe Bartlett of Maryland has for years tried
to restore this birthday of the father of our country to the holiday it
once was, before it was mixed into the amorphous President's Day. And my
question, does the President agree or disagree with Mr. Bartlett regarding
General and President Washington?

MR. STANZEL: I don't think that he's had any comments on that.

Q Well, what are -- would you inquire? This is Washington's birthday.

MR. STANZEL: We all celebrate the lives of past Presidents.

Q Do you have any reaction to Muqtada al-Sadr announcing that he will
extend the cease-fire by six months in Iraq?

MR. STANZEL: We welcome any move that forswears violence and encourages
peaceful participation. To the extent the announcement today serves to
further isolate the groups that are engaging in violence, and to the extent
that it helps enhance our intelligence to root out those groups, it's a
positive development. The Iraqi and coalition forces will continue to
target terrorists and extremists, including groups that are being funded
and trained by Iran. But to the extent that this will help reduce the
violence, it's a positive step.

Q What's the latest from Belgrade and from Kosovo? I apologize for
asking this general, bad question, but I am interested in whatever you can
provide in terms of information and/or comment.

MR. STANZEL: Well, as you may have seen yesterday, Sean McCormack had a
briefing at the State Department to provide an update about the situation
in Belgrade. Also, Nick Burns has been out this morning on television
talking about it. We believe that yesterday's attacks on our embassy were
conducted by hooligans and thugs. We don't believe that this is the face
that Serbia wants to present to the world, and we quite frankly don't
believe that this is the face of Serbia. We want to continue to work to
integrate Serbia into European institutions. Today, understand that the
situation in Belgrade is quiet. And so we -- and we've also been assured
that there will be no repeat of what happened yesterday.

Ed.

Q Scott, since yesterday the McCain campaign launched a very aggressive
counterattack, and here today the White House is joining in that. Can you
be a little more specific in how far back is the White House going in
saying that The New York Times does this on a weekly basis on a Republican
-- pretty serious charges.

MR. STANZEL: Having been involved in the 2000 and 2004 campaigns, I can
tell you that there are many times that we've had this sense, in both of
those campaigns.

Q "Many" is different from "weekly," though --

MR. STANZEL: Well, I think that's --

Q -- it's 52 --

MR. STANZEL: What's that?

Q Do you equate 52 --

MR. STANZEL: No, I said, about on a monthly basis probably leading up to
the convention, and then seemingly on a weekly basis after that.

Q Can I follow on that? Are you, on behalf of the White House, accusing
The New York Times of only "dropping a bomb" on the Republican nominee, and
never quote -- and never giving that kind of treatment to a Democratic
nominee?

MR. STANZEL: I'm not saying they never give that kind of treatment, but we
see it's pretty regular treatment of the Republican nominee.

Q Scott, I'm sorry, you were cut off -- you were saying something --

MR. STANZEL: Well, do you have any other questions?

Q The (inaudible), do you who that is?

MR. STANZEL: I think that that's information that the State Department has
spoken to. All of the State Department personnel have been accounted for.
So we believe that may have been a protester, but I'd refer you to the
State Department for more information about that.

Q And whether there is outside interference in the events?

MR. STANZEL: I'm sorry?

Q Do you believe there is outside interference in the events, incitement
for violence?

MR. STANZEL: I would refer you to State for more information.

Q And when you used the word "thug," would you describe what you mean
when you say this is a group of thugs?

MR. STANZEL: Well, these are people that are resorting to violence and
vandalism to try to express a political view. We have urged calm, and we
think that peaceful protests throughout the world is appropriate, but be it
just that -- peaceful.

Q When you said -- back to The New York Times -- said sometimes they
make incredible leaps, is that what the story you thought yesterday was
about Senator McCain?

MR. STANZEL: I'm not going to speak to the specifics in that story, but
it's been our impression that they do make leaps to drop those bombshells.

Q Week ahead?

MR. STANZEL: Week ahead.

Friday, that's today -- no public events. It will be overnight here in
Washington. Saturday, he'll also be overnight here.

Sunday, at 8:05 p.m., the President and Mrs. Bush host a dinner for the
nation's governors, and that's in the State Dining Room. That is pool for
toasts. At 9:35 p.m. the President and Mrs. Bush will attend entertainment
in the East Room, and that's pool coverage.

On Monday, the 25th, at 11:05 a.m., the President will participate in a
photo opportunity with the National Governor's Association. That's on the
North Portico, for still photographers. At 11:20 a.m. the President the
President will meet with the National Governors' Association in the State
Dining Room, and that is pool for remarks. At 6:50 p.m., the President
will make remarks at the 2008 Republican Governor's Association gala, which
is at the National Building Museum. That is open press.

And Tuesday, February 26th, at 2:45 p.m., the President makes remarks on
Picturing America Initiative. That is in the East Room at the White House.
That's open press.

On Wednesday, February 27th, at 10:20 a.m., the President will meet with
Prime Minister of the Czech Republic in the Oval Office. That's pool at
the bottom. At 3:05 p.m., the President will participate in a photo
opportunity and make remarks to the Boston Red Sox on the South Lawn, and
that is open press.

On Thursday there are no public events at this time.

On Friday, at 11:05 a.m., the President meets with the Secretary General of
NATO in the Oval Office; that's pool at the end. At 4:30 p.m. the
President participates in the arrival of the Prime Minister of Denmark and
Mrs. Rasmussen.

Q Where is that?

MR. STANZEL: That is at the Bush ranch. And that is pool coverage.
Saturday, March 1st, at 11:55 a.m., the President participates in a joint
press availability with Prime Minister of Denmark on the Bush ranch, and
that is also pool coverage. Sunday, March 2nd, no public events; the
President will be in Crawford. And on Monday, March 3rd, the President
returns to Washington, and at 2:30 p.m. on that day the President will
participate in the presentation of the Medal of Honor that I noted at the
top -- and that's in the East Room, and that's open press.

Q The press avail is central time that you just gave us?

MR. STANZEL: Yes.

Q Scott, do we know if the President has voted yet?

MR. STANZEL: I don't know that he has, Ken. He said he was going to, but
I haven't checked to see if he has yet.